1. business and industrial
2. company
3. merger and acquisition

Compulsory Purchase
and Compensation
Compulsory Purchase Procedure
1
Compulsory Purchase
and Compensation
Compulsory Purchase Procedure
October 2004
Office of the Deputy Prime Minister: London
Department for Communities and Local Government
Eland House
Bressenden Place
London SW1E 5DU
Tel: 020 7944 4400
Website: www.communities.gov.uk
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Contents
Foreword
5
1. Introduction
6
How to Use this Booklet
Terms Used in Compulsory Purchase
Useful Contacts
The Need for Compulsory Purchase Powers
Source of Compulsory Purchase Powers
Who Can Obtain Compulsory Purchase Powers?
6
6
6
6
7
7
2. Is My Land Affected by a CPO?
8
3. Outline of Procedure
9
Formulation
Resolution
Referencing – Recording Information
Notification and Publicity
Objections
Consideration of objections
The Inquiry
The written representations procedure
Decision
Possession
By Agreement
Notice to Treat Followed by Notice of Entry
General Vesting Declaration (GVD)
Short Tenancies
In Response to a Blight Notice
Compensation
10
11
11
12
13
15
15
17
18
20
20
20
22
23
24
25
4. Next Steps
26
DIAGRAMS
Diagram 1: Am I affected by a CPO?
Diagram 2: Compulsory Purchase – Process
8
10
APPENDICES
Appendix 1 – Terms Used In Compulsory Purchase
27
Appendix 2 – Useful Contacts
30
Foreword
This is the first in a series of five booklets which explain, in simple terms, how the compulsory
purchase system works. If you think you may be affected by compulsory purchase you should read
this booklet. It is important that you read this booklet before reading the others in the series as it
provides an overview. In particular, this booklet explains:
• Why there is a need to make compulsory purchase orders (CPOs).
• Who can use these powers, and the procedure for gaining those powers.
• How the powers are implemented by the acquiring authority.
• What your rights are and what opportunities exist to resist or influence the procedure.
Once you have read this booklet you will be directed to one or more of the other four booklets.
The other booklets in the series are:
Booklet 2
Booklet 3
Booklet 4
Booklet 5
Compensation to Business Owners and Occupiers
Compensation to Agricultural Owners and Occupiers
Compensation to Residential Owners and Occupiers
Mitigation Works
The titles of booklets 2, 3 and 4 are self-explanatory and you need only read the ones which deal
with the type of property you own or occupy. These booklets explain your rights to compensation
and how it should be assessed.
Booklet 5 deals with the limited circumstances in which an acquiring authority may undertake works
to reduce or “mitigate” the adverse effects of its development.
Legislation in England and Wales gives many authorised bodies (referred to in this booklet as
“acquiring authorities”) the power to acquire land compulsorily where the landowner or occupier is
not willing to sell by agreement. It can be very worrying and distressing to discover that the property
you own or occupy is to be compulsorily acquired, and these booklets are intended to help you.
The law and procedure relating to compulsory purchase is complex. Of necessity the information set
out in this series of booklets is a simplification and cannot cover every circumstance that may arise.
The information contained in the booklets is not intended to be a complete guide to the law and
carries no legal force. It should, however, provide an understanding of the compulsory purchase
procedure, setting out the rights of landowners and occupiers and identifying where opportunities
may exist to resist or influence the compulsory purchase procedure.
This guidance is not a substitute for professional advice. If you think your property may be
the subject of a CPO you should seek advice from a professionally qualified person such as a
chartered surveyor or solicitor, who should be able to advise on your rights and also act on
your behalf if appropriate. It is best to seek professional help as early as possible.
The Royal Institution of Chartered Surveyors operates a Compulsory Purchase Helpline
which can be contacted on 0870 333 1600. This helpline puts you in touch with experienced
chartered surveyors in the local area who will provide up to 30 minutes of free advice.
5
1. Introduction
1.1
The guidance contained in this booklet comprises an explanation of the procedures that
acquiring authorities must go through to obtain powers to acquire land compulsorily. It points
out those areas where the landowner or occupier will be affected. You should read the whole
text to understand the procedures and identify opportunities to minimise the potential impact
on land where possible.
How to Use this Booklet
1.2
There are two flow diagrams within the text which are designed to help you find out which
stage the compulsory purchase procedure may have reached and direct you to the particular
area of the booklet which deals with that area.
1.3
Diagram 1 – “Am I Affected by a CPO?” is designed to help you find out whether your land
is likely to be affected by compulsory purchase or other development works.
1.4
If after looking at Diagram 1 you think that your land may be affected you will be directed to
Diagram 2 – “Compulsory Purchase – The Process” which will help you find out what stage
the compulsory purchase procedure has reached.
Terms Used in Compulsory Purchase
1.5
This series of booklets is aimed at lay people and wherever possible the use of jargon and
technical language has been avoided. There are, however, a number of important terms which
have a specific meaning in compulsory purchase matters. The use of these terms could not
be avoided.
1.6
It is important to understand these words and expressions and an explanation is in Appendix 1
of this booklet.
Useful Contacts
1.7
There are a number of bodies and organisations who may be able to offer their advice if you
are affected by compulsory purchase. A list of useful contact names, addresses and telephone
numbers is set out in Appendix 2 of this booklet.
The Need for Compulsory Purchase Powers
1.8
6
Compulsory purchase powers are provided to enable acquiring authorities to compulsorily
purchase land to carry out a function which Parliament has decided is in the public interest.
Anyone who has land acquired is generally entitled to compensation. This is dealt with
separately in booklets 2, 3 and 4 on compensation.
Source of Compulsory Purchase Powers
1.9
The two most commonly used powers of compulsory purchase are:
•
•
A Compulsory Purchase Order (CPO), based on a specific Act of Parliament.
An Order under the Transport and Works Act 1992.
1.10
Separate guidance is available from the Department for Transport on Transport and Works
Act orders, which are therefore not discussed further in this booklet. There are other sources
of compulsory purchase powers but they are rarely used and are so are also beyond the scope
of this booklet.
1.11
The procedures for promoting an Order, dealing with objections, public local inquiry,
confirmation and challenge are similar for both a CPO and an Order under the Transport and
Works Act. Those for a CPO are summarised in Diagram 2 and the accompanying text.
Who Can Obtain Compulsory Purchase Powers?
1.12
Many bodies with statutory powers have compulsory purchase powers. Such powers are
conferred and prescribed by Acts of Parliament, and require the approval of the Government
Minister specified in the particular Act (or the National Assembly in Wales). In practice, the
greatest users of compulsory purchase powers are Local Authorities and the Highways
Agency. Other statutory bodies who may make CPOs include Government Departments,
Regional Development Agencies, English Partnerships, Urban Development Corporations and
major utilities such as water or electricity companies. Those seeking to provide infrastructure
(such as railways) will normally apply for an order under the Transport and Works Act 1992
which will give compulsory purchase powers.
7
2. Is My Land Affected by a CPO?
2.1
If you think you may be affected by a CPO there are some simple actions you can take to try
and find out more. Diagram 1 – “Am I Affected by a CPO?” will assist.
Diagram 1
AM I AFFECTED BY A CPO?
Do you think your land may be affected
by a CPO or nearby major developments?
Yes
Not sure
How can I find out more?
Do you know who the acquiring authority is?
Yes
No
Contact the acquiring authority and get
the name of an appointed person who will
be responsible for public liaison. Ask if
there are any proposals to compulsorily
acquire your land or any adjacent land.
Contact your local Council and ask if there
are any proposals for public works or
compulsory purchase schemes – the
departments likely to help are planning,
legal and estates. Other useful bodies to
contact for commercial properties are the
Regional Development Agencies and
regional Government Offices. For
agricultural and rural land the CLA, NFU and
CPRE may be able to assist. Contact details
for those bodies are contained in the
ìUseful Contacts ” section of the booklet.
Find out what stage the CPO procedure
has reached.
The various stages of a CPO are set out in
Diagram 2.
8
If these enquiries confirm that there are
proposals to compulsorily acquire land,
you should contact the acquiring authority.
3. Outline of Procedure
3.1
The compulsory purchase process is made up of a number of stages. It is important to note
that the acquiring authority does not have the powers to compulsorily acquire land until the
appropriate Government Minister confirms the CPO. However, they can acquire by agreement
at any time and they should attempt to do so before acquiring by compulsion. If you are keen
to sell your property you should contact the acquiring authority to see if they are prepared to
acquire your property early.
3.2
If the acquiring authority are unable to purchase by agreement because they are unable to
agree or it is impractical to do so they will go down the compulsory purchase route. Various
stages need to be completed before the powers are confirmed. The full process is summarised
in Diagram 2 – “Compulsory Purchase – The Process” together with details of where further
explanation can be found in the booklet.
3.3
Once the compulsory purchase process starts it is important that you keep a comprehensive
record of all communications with the acquiring authority. You should also keep detailed
records of all expenses incurred and losses sustained as you may be able to recover these as
part of your claim for compensation. You should bear in mind that you can only receive
compensation for expenses and losses which occur as a direct and reasonable consequence of
the acquisition of your property. You are also under a duty to “mitigate your loss”. This
means that you should take steps to minimise your losses. If losses are increased as a
result of your actions (or lack of them) you will not receive compensation for these
increased losses.
3.4
For example, you may need to employ a removals firm to assist with your move. If so, you
should obtain quotes from three reputable firms. Assuming all three are the same service you
should instruct the cheapest in order to mitigate your loss. In the case of a business occupier
another example would be to ensure that the relocation of your business is undertaken in a
timely and ordered manner so as to minimise any potential loss of profits.
3.5
The assessment of compensation is covered in Booklets 2, 3 and 4.
9
Diagram 2
COMPULSORY PURCHASE – PROCESS
Formulation (Paragraph 3.7)
Making the Order (Paragraph 3.20)
Notification and Publicity (Paragraph 3.24)
Decision (Paragraph 3.64)
Possession (Paragraph 3.78)
3.6
Resolution (Paragraph 3.12)
Referencing – Recording Information
(Paragraph 3.15)
Objections (Paragraph 3.28)
The Inquiry (Paragraph 3.40) or Written
Representations Procedure (Paragraph 3.57)
Compensation (See Booklet 2, 3 or 4
depending on whether your property is
Business, Agricultural or Residential
Each of these stages is described below.
Formulation
3.7
The first stage is for the acquiring authority to decide that land is required for some particular
purpose or scheme and that they are prepared to use compulsory purchase powers to assist in
achieving this.
3.8
The acquiring authority must determine how much land they require for their scheme and are
likely to undertake feasibility studies to define the boundaries of the scheme. This may
involve walking the site and undertaking inspections of affected properties.
3.9
It is during this initial information-gathering exercise that you may first become aware of the
prospect of a compulsory purchase. The acquiring authority may choose to make direct
contact with owners and occupiers at this stage, and may seek to enter into negotiations to
acquire land by agreement. They may use statutory powers to obtain information from
landowners and occupiers or to enter land for survey purposes.
3.10
Clearly, if the authority make direct contact, you will be alerted to their intentions. If, however,
no direct contact is made but you suspect that there are proposals to acquire your land, and you
want to find out more, a sensible first step is to contact the local Council. The Estates
Department, the Legal Department and the Planning Department may be able to assist.
3.11
Each of these Departments should know if the Council itself has proposals to use compulsory
purchase powers. However, it may be that the body intending to use compulsory purchase is
10
not the local Council. If this is the case, it may still be able to assist by advising if it is aware
of any proposals for development which will involve the acquisition of your property and
suggesting which other bodies you could contact.
Resolution
3.12
Once the acquiring authority has completed their initial investigations and established the
proposed CPO boundary, they can proceed to the next stage. This is the formal resolution to
use compulsory purchase powers. If the CPO is to be made by a local Council, the Council
Executive or the appropriate Executive committee will consider a report prepared by officers
recommending the use of compulsory purchase powers and make a decision.
3.13
The resolution will define the land to be acquired (usually by reference to a plan) and state
the purpose for which the land is required.
3.14
Whilst there is no requirement for resolutions by acquiring authorities other than Councils to
be disclosed, it is good practice for such an acquiring authority (eg the Highways Agency or
an electricity company) to inform the relevant local Council. If this occurs it should be
possible to find out about resolutions by asking the local Council.
Referencing – Recording Information
3.15
This is the exercise undertaken by acquiring authorities of collecting and recording
information on land ownership and occupation. The process builds upon the initial
information-gathering exercise which an acquiring authority would have undertaken during
the formulation stage.
3.16
The acquiring authority will be seeking to identify everyone who has a legal interest in, or
right to occupy, the land they propose to acquire. This would include the freeholders,
leaseholders, tenants and occupiers.
3.17
To assist in this process the authority will usually serve a “requisition for information” form
on all people they think own or occupy property they wish to acquire. The form will ask for
details of your interest in the land (for example, freehold or leasehold) and also of anyone
else who has an interest in it. The form may include a map extract asking you to mark the
boundary of your interest. Failure to provide information, or making false or reckless
statements, is a criminal offence.
3.18
If you receive a notice of this kind and you are not sure what it means you should
immediately contact the authority or organisation that sent the letter.
Making the Order
3.19
Once the information-gathering exercise is complete, the acquiring authority should be ready
to make the CPO. The CPO will have a heading or title which identifies the general area
within which the land is situated and the year in which the CPO was made. For example,
“The Borough of Broxmere (Broad Street) Compulsory Purchase Order 2004”.
11
3.20
The main body of the CPO will contain details of the Act authorising the acquisition, the
purpose for which the CPO is being made and the name of the acquiring authority.
CPO Schedule and Map
3.21
Attached to the CPO will be a schedule showing the ownership of land within the CPO. The
schedule will contain the extent, description and situation of the land and set out (where
known) the names and addresses of reputed owners, leaseholders, tenants, occupiers, persons
who enjoy rights over the land which will be interferred with, and persons who are likely to
be entitled to make a claim for compensation because the value of their land will/may be
reduced as a result of works carried out on the land being compulsorily acquired even though
none of their land is being compulsorily acquired. More details about entitlement to make
such claims can be found in Booklets 2, 3, and 4.
3.22
Each plot of land referred to in the schedule will have a reference number which will
correspond with the relevant plot on the CPO map which will be attached to the CPO.
Statement of Reasons
3.23
The acquiring authority will usually prepare a document known as a Statement of Reasons for
making the Order. This sets out the authority’s reasons for seeking to acquire the land, and
will accompany the CPO.
Notification and Publicity
Press Notices and Site Notices
3.24
Before the acquiring authority submits the CPO for confirmation, a notice must be published
for two successive weeks in one or more local newspapers and must also be fixed on or near
the land covered by the order.
Individual Notices
3.25
The acquiring authority must serve notice stating the effects of the order on every “qualifying
person”, that is on:
•
•
every owner, leaseholder, tenant, and occupier of any land comprised in the CPO; and
any other person who may have the right to claim compensation either because:
(a) they own rights in the land being acquired and these will be intefered with; or
(b) the value of their land will/may be reduced as a result of works carried out on the land
being compulsorily acquired (even though none of their land is being compulsorily
acquired).
It may not be possible for the acquiring authority to identify all such people before the CPO is made.
The authority must, therefore, also put up site notices on the land.
12
3.26
3.27
The content of both the press notice, the site notice, and the individual notices is very similar,
and each will:
•
State that a CPO is about to be submitted to a Government Minister (or to the Welsh
Assembly Government) for confirmation.
•
Specify the time within which objections to the CPO can be made. This must be at least
21 days from the date the notice is posted.
•
•
Specify the manner in which objections to the CPO may be made.
Say where in the locality the CPO and map may be inspected.
Objections are considered in further detail below.
Objections
3.28
The notifications of the making of the CPO invite the submission of objections to the
relevant Government Minister or Welsh Assembly Government (referred to here for brevity
as “the Minister”). Objections must arrive with the Minister within the period specified
in the notice.
3.29
The details of the address to which objections should be sent and the time period for doing so
are set out in the notice. There is no specific format for the objection other than it must be in
writing. You can write the letter yourself or you may appoint a professional adviser to submit
the objection on your behalf.
3.30
If no objections are made and the Minister is satisfied that the proper procedure for serving
and publishing notices has been observed, he will consider the case on its merits and may
confirm, modify or reject the CPO without the need for any form of hearing.
3.31
Objectors fall into two categories. A “remaining objector” is a qualifying person who has
objected within the stipulated period and has not withdrawn their objection and is:
– an owner, lessee, occupier or tenant of land within the CPO; or
– a person who may have the right to claim compensation either because:
(a) they own rights in the land being acquired and these will be intefered with; or
(b) the value of their land will/may be reduced as a result of works carried out on the land
being compulsorily acquired (even though none of their land is being compulsorily
acquired).
Other people may object to an order although they are not qualifying persons in relation to
the order. However, only a remaining objector has a right to be heard at the public inquiry and
the Minister is only obliged to hold an inquiry if there are remaining objectors.
3.32
If objections are received and not withdrawn, the Minister will either arrange for a public
local inquiry to be held or – where all the remaining objectors agree to it – arrange for the
objections to be considered through the written representations procedure.
13
Grounds for Objection
3.33
3.34
In general, any objection will be valid if properly made. The Minister is, however, entitled to
disregard objections:
•
If he is satisfied that the objection relates exclusively to matters which can be dealt
with by the Lands Tribunal. This means disputes regarding the appropriate level of
compensation and disputes on whether part only of a property may be compulsorily
acquired or whether the authority should be compelled to acquire the whole – even if it
only requires part for the scheme. (This is referred to as “material detriment” and is
explained in the Booklets 2, 3 and 4 on compensation).
•
If, in the case of a CPO under the Town and Country Planning Act 1990, the objection
amounts to an objection to the provisions of the adopted development plan defining the
use of land.
Objections usually fall into three categories as follows:
•
You may agree with the purpose of the scheme, but you would like to see minor
amendments to minimise the impact on you. Objections of this nature may secure changes
to reduce the visual or noise intrusion of a scheme, or minor adjustments to the land
required; or
•
You may agree with the purpose of the scheme but you feel that it should be located
elsewhere; or
•
You may object to the scheme completely. As stated above, however, this cannot be solely
on the grounds that you object to adopted planning policy.
Negotiations with the Acquiring Authority
3.35
The acquiring authority will normally seek to negotiate with objectors prior to the public
inquiry or, where relevant, during the written representations procedure.
3.36
If an objection relates to a specific matter which the acquiring authority can accommodate
without prejudicing their scheme, they may be prepared to amend their scheme thus enabling
the withdrawal of the objection.
3.37
It may also be possible to secure some form of undertaking from the authority limiting the
way in which they will exercise their powers, probably in exchange for the withdrawal of the
objection. Before withdrawing your objection you should ensure that any agreement
reached is in writing in some form of legally enforceable agreement. Your solicitor
should advise you on this.
3.38
If the acquiring authority is unable to secure the withdrawal of every remaining objector’s
objection there will either be a public local inquiry or (if all the remaining objectors have
agreed to its use) the written representations procedure will be followed.
14
Consideration of objections
3.39
Shortly after the closing date for objections if the Minister thinks the objections could be
considered through the written representations procedure he will write to the remaining
objectors seeking their consent to this. If, however, he considers that the written
representations procedure is not appropriate he will write to the acquiring authority and the
objectors indicating that an inquiry is to be held. Similarly, where one (or more) remaining
objector does not consent to the written representations procedure, the Minister will write to
all parties indicating that an inquiry is to be held. The date of the letter indicating an inquiry
is to be held is known as the “relevant date”. (The written representations procedure is
described at paragraph 3.57 below).
The Inquiry
3.40
Not later than six weeks after the “relevant date” the acquiring authority must serve a
“Statement of Case” on the Minister and each remaining objector. This sets out full
particulars of the case to be put forward at the inquiry and justifies the reasons for making the
CPO. Copies of all documents referred to in the Statement of Case must be attached, together
with a list of any documents which the Council intends to refer to at the inquiry.
3.41
The acquiring authority must allow anyone who so wishes to inspect the Statement and
documents and take copies. You should not be charged for inspecting documents, however, if
you take copies of documents there may be a charge to cover reasonable administration costs.
3.42
Remaining objectors and anyone appearing at the inquiry may be asked by the Minister to
provide a full statement of case. However, this usually only happens in the case of a complex
or substantial objection.
3.43
There is no obligation for an objector to appoint legal or other representation. However, if
you intend to become involved in an inquiry you are strongly recommended to have the
necessary specialist advice available. Legal advice is usually needed as, although an
inquiry is not a court of law, it is subject to procedures set down by law and decisions arising
from the inquiry are legally binding. You will also probably need expert witnesses to give
technical and professional evidence. This will have cost implications. For information about
the award of costs see paragraph 3.67.
Date of Inquiry
3.44
The inquiry should normally be held within 22 weeks of the “relevant date”. Each remaining
objector and the acquiring authority must be given at least 42 days notice of the date, time
and place of the inquiry. At least 14 days before the inquiry, site notices must be posted by
the authority, advertising the details. A press notice may also be required.
15
3.45
In the case of CPOs which have attracted a large number of objectors, it is likely that a preinquiry meeting will be held to discuss the procedure, scope and programming of the
inquiry. This meeting will be chaired by the Inspector appointed to conduct the inquiry, who
may give directions, for example for the prior exchange of evidence. This will be a public
meeting and all objectors will be invited to attend.
Inquiry Procedure
3.46
The procedure before, during and after the inquiry is generally governed by the Compulsory
Purchase (Inquiries Procedure) Rules 2007 – “The 2007 Rules”. Inquiries under highways
legislation and Transport and Works Act procedures have their own rules. The general
principles are similar.
3.47
The inquiry procedure is also subject to the rules of natural justice. These rules, developed by
the Courts, provide that there must be fairness in the conduct of an administrative process
and, in particular, each side must have a fair opportunity to be heard and to hear and question
the case against them. A CPO may be challenged if there has been a breach of either the rules
of natural justice or the statutory rules of procedure. Challenges to the confirmation of a CPO
are covered at paragraph 3.73.
3.48
The inquiry is held before an Inspector appointed by the Minister. Inspectors are usually
specialists, for example surveyors, engineers or architects. The appointment of an Inspector
for a specific inquiry will take into account the particular suitability of the Inspector for
dealing with the matter in question. The Inspector determines how the inquiry is to proceed.
He or she will make this known at the opening of the inquiry if there has not been a preinquiry meeting (see paragraph 3.45). Generally he or she will try to keep proceedings
informal whilst ensuring that all parties are able to have their say in an organised and
orderly manner.
3.49
Usually, the acquiring authority will present their case first. This is done by way of an
opening statement by their advocate, followed by the calling of witnesses to give evidence.
3.50
The authority’s witnesses may then be questioned by objectors (“cross-examination”) and by
the Inspector. The same process is followed by each objector. By this process, the case for
and against acquisition is tested, hence the need for specialist advice and thorough
preparation. Remaining objectors are entitled to cross-examine the acquiring authority’s
witnesses and any other witnesses. However, other objectors must obtain the Inspector’s
consent to cross-examine witnesses. In practice, this is almost always given.
3.51
The Inspector may require that evidence is given on oath but this is not common.
3.52
Following the evidence of the objectors, the acquiring authority has the opportunity of final
reply.
3.53
If you are unable or unwilling to attend the inquiry you may, if you would prefer, make a
written representation either before or during the inquiry. The Inspector is required to disclose
the contents of written representations to the inquiry.
16
Site Visit
3.54
The Inspector will usually visit the site. Before or during the inquiry, he can visit it on his
own. During or after the inquiry he can also make an accompanied site visit, ie the Inspector
will visit the site accompanied by a representative of the acquiring authority and/or any
remaining objector(s) who wishes to attend. The Inspector must make an accompanied visit if
requested to do so by the acquiring authority or any of the remaining objectors. The date and
time of an accompanied site visit will be announced by the Inspector during the inquiry. The
acquiring authority and any remaining objectors will have the right to attend. The Inspector
will refuse to discuss the merits of the case on an accompanied site visit.
Post Inquiry Procedure
3.55
After the close of the inquiry, the Inspector will produce a report for the Minister clearly
setting out his or her conclusions and putting forward recommendations.
3.56
The Inspector does not make a decision, but recommends a course of action to the
Government Minister.
The written representations procedure
3.57
As an alternative to holding an inquiry, objections can be considered by an Inspector through
the written representations procedure. Instead of the acquiring authority and objectors (or
their representatives) appearing in person before an Inspector, the cases for and against the
order are elaborated entirely in writing. The written representations procedure is governed
by the Compulsory Purchase of Land (Written Representations Procedure) (Ministers)
Regulations 2004.
3.58
Where all the remaining objectors consent to the written representations procedure, the
Minister will write to the acquiring authority and the objectors setting a starting date for the
written procedure.
3.59
The Minister will ask the acquiring authority to make any additional representations they
wish to him not later than 14 working days after the start date, or to indicate that they wish to
treat their statement of reasons as their representations.
3.60
The Minister will then send the remaining objectors copies of any additional representation
the acquiring authority have made. He will ask them to make any additional representations
they wish not later than 15 working days from the date of his letter, or to indicate they do not
wish to make further representations.
3.61
The Minister will then send any such representation from the remaining objectors to the
acquiring authority, asking them to make any final comments no later than 10 working days
from the date of his letter.
3.62
The Minister will then appoint an Inspector, who will consider the written representations,
undertake a site visit if appropriate, and make a recommendation in respect of the order.
17
3.63
The Minister can disregard any representations received outside the deadlines set.
Decision
3.64
After considering the Inspector’s Report following either an inquiry or the use of the written
representations procedure, the Minister will decide to confirm, modify or reject the CPO.
3.65
The Minister may make a decision which is contrary to the Inspector’s recommendations,
although this is not very common.
3.66
When the Minister has reached his decision he will in writing notify the acquiring authority,
the remaining objectors and any other person who appeared at the inquiry or made written
representations and asked to be notified. The decision letter will set out the reasons for the
decision. Any party who wishes to have a copy of the Inspector’s report can require the
Minister to provide one (if it was not enclosed with the decision letter).
Costs
3.67
Anyone who receives a personal notice of a CPO may, if his income and capital are
within certain financial limits, be able to get financial help towards the costs of
employing a solicitor to help him prepare his case. Further information on this is set out
in the leaflet “The Community Legal Service” which is available from your local Citizens
Advice Bureau or the Legal Services Commission. However, financial help cannot be given
towards legal representation at the inquiry. The availability of subsidised legal assistance
depends upon your circumstances and in some cases the advice may be free. Contact details
for the Citizens Advice Bureau and the Legal Services Commission are provided in the
Useful Contacts section.
3.68
A remaining objector who is successful following an inquiry or the written representations
procedure will be awarded costs unless there are exceptional reasons for not doing so. A
successful remaining objector is one whose objection was sustained, such that the CPO was
not confirmed or the objector’s land was excluded from the CPO. You may be partially
successful, i.e. part of your land may be excluded from the CPO.
3.69
The award would cover reasonable costs including professional fees incurred in pursuing the
objection and attending the inquiry or in following the written representations procedure. If
you are partly successful, you will usually receive a partial award of costs.
3.70
Successful objectors are invited to submit their claims for costs to the Minister when they
receive written notification of his decision.
Confirmation of the CPO
3.71
18
As soon as possible after the decision letter is issued, the acquiring authority must publicise
the decision in one or more local newspapers.
3.72
A copy of the notice and a copy of the confirmed CPO must be fixed on or near the site and
also be served on:
– all owners, lessees, tenants and occupiers of the land; and
– any other person who may have the right to claim compensation either because:
(a) they own rights in the land being acquired and these will be intefered with; or
(b) the value of their land will/may be reduced as a result of works carried out on the land
being compulsorily acquired (even though none of their land is being compulsorily
acquired).
Challenge to Confirmation of CPO
3.73
The validity of a CPO can be challenged in proceedings in the High Court under the
Acquisition of Land Act 1981 brought within six weeks following the first newspaper
publication of the notice of confirmation of the CPO. There is therefore a need to act
very quickly if you think there are grounds for challenge and you should take legal
advice immediately.
3.74
In general terms, a challenge can be on one or more of three grounds:
3.75
•
That the powers granted are “ultra vires”. This means they go beyond the powers
permitted by the Act of Parliament under which they are being sought.
•
•
That the procedural rules have not been followed correctly.
That the Minister or the Inspector has not acted properly in reaching a decision – for
example that there was no evidence to support the decision, or that irrelevant
considerations were taken into account or relevant ones ignored.
If the challenge is successful, the High Court may quash the CPO or any part of it.
Other challenges to decisions on CPOs
3.76
If, for example, the Minister decides not to confirm a CPO, this may not be the end of the
matter. The acquiring authority might apply to the court for a Judicial Review, usually on
grounds similar to those in third bullet point of paragraph 3.75 above. Applications for
Judicial Review must be made as soon as possible and in any event within three months of
the decision challenged.
3.77
There may also be circumstances when a decision (other than to confirm the CPO)
reached during the compulsory purchase process, may be subject to Judicial Review in
the basis that it has been incorrectly made. If you think that such a decision has been
made in your case, you should seek legal advice immediately.
19
Possession
3.78
Following the confirmation of a CPO there are a number of methods available to acquiring
authorities to purchase land as follows:
•
•
•
•
•
3.79
By agreement;
Following a Notice to Treat/Notice of Entry;
By a General Vesting Declaration (GVD);
By procedures for acquiring “short tenancies”;
In response to a Blight Notice.
Each of these is considered below:
By Agreement
3.80
The fact that an acquiring authority has obtained a confirmed CPO does not exclude a
purchase by agreement. Indeed, the acquiring authority will usually have attempted to acquire
land by agreement prior to making the CPO.
3.81
Once the CPO has been confirmed, the acquiring authority may continue in their negotiations
to acquire the land by agreement without the need to implement their powers. The authority
will, of course, do so in the knowledge that if negotiations prove unsuccessful, they can
secure ownership of the land by going down a compulsory purchase route.
3.82
The price paid by the acquiring authority in these circumstances will normally be in
accordance with the “Compensation Code”. In other words, it will be equivalent to the
compensation which would have been payable had the land been compulsorily acquired. This
means that in addition to the value of the land, the price may include an amount in respect of
severance, injurious affection and disturbance as appropriate.
3.83
The basis and calculation of compensation in accordance with the Compensation Code is
detailed in Booklets 2, 3 and 4 on compensation.
3.84
Land may be acquired for a capital sum or in exchange for other land.
Notice to Treat Followed by Notice of Entry
3.85
Acquiring authorities may acquire land by service of a document known as a notice to treat
followed by notice of entry.
3.86
The notice to treat must be served within three years of the confirmation of the CPO, and it
will state that the acquiring authority is willing to negotiate for possession of the land.
20
3.87
A notice to treat must:
•
•
•
Specify the land to which it relates;
•
Ask for the addressee’s claim in respect of the land within a specific period (usually
21 days).
Request particulars of the addressee’s interests and rights in the land;
State that the acquiring authority is willing to treat (negotiate) for the purchase of the land
and to pay compensation;
Action Following Receipt of a Notice to Treat
3.88
If you receive a Notice to Treat, you are required to respond to the questions it raises and to
submit a notice of claim for compensation to the acquiring authority.
3.89
There is no specific format for the notice of claim other than that it must be in writing. In
practice, the acquiring authority will usually serve a “claim form” with the notice to treat
which will contain boxes to be completed and returned.
3.90
The acquiring authority may require you to produce evidence of your interest in land, for
example a copy of the title deeds or lease.
3.91
The acquiring authority will specify a time limit for submitting a notice of claim, which
must be not less than 21 days from the serving of the notice to treat. In practice, a
longer time period is often specified. You should aim to complete as much of the claim
as you can and return it within the specified time period. You are able to revise your
claim once it has been submitted. You should contact your professional adviser as soon
as you receive a notice to treat. He or she will be able to help you complete your notice
of claim.
3.92
The authority may withdraw the notice to treat within six weeks after receiving a claim, but it
may have to pay compensation for losses sustained.
Consequences of Not Submitting a Notice of Claim
3.93
If a notice of claim is not submitted within the specified time period, the acquiring authority
is entitled to:
•
•
3.94
Refer the question of compensation to the Lands Tribunal;
Withdraw the notice to treat and abandon the proposal to purchase.
In practice, the acquiring authority is unlikely to pursue either course of action, but
you are advised to comply with the timetable for submitting the notice of claim. This is
because failure to do so may prejudice your position on costs if the case is ultimately
submitted to the Lands Tribunal.
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3.95
In addition, if the notice to treat refers to only part of your land and you are keen to try
to force the acquiring authority to purchase the whole of your land holding (which is
possible in certain circumstances), your rights may be prejudiced if you do not comply
with the timetable.
Other Effects of Receipt of Notice to Treat
Restriction on Works
3.96
Once you have received a notice to treat you may not be compensated in respect of any new
interests created (or any old interests determined) after that date, if this action was taken with
a view to obtaining or increasing compensation. An example of a new interest would be the
grant of a new lease.
3.97
Any building work, alterations or improvements made which the Lands Tribunal considers
not reasonably necessary and to have been undertaken with a view to increasing
compensation will be disregarded in the settlement of compensation. However, you are
entitled to continue to deal with your land in the normal way, i.e. to sell it, let it or undertake
repairs or alterations, so long as this is not done with a view to increasing the compensation
payable.
Possession – Notice of Entry
3.98
Following service of the notice to treat, the acquiring authority can take possession of the
land following service of a notice of entry.
3.99
The notice of entry must specify a date (which must be not less than 14 days away) when the
acquiring authority proposes to enter and take possession of the property (they are not
obliged to enter on the specified date and frequently do so later). The date that the acquiring
authority enters and takes possession of the land (following service of notice of entry) must
be within three years from the date of the service of the notice to treat.
3.100 It is important to note that once the acquiring authority has entered the land via the notice to
treat/notice of entry route, they have still not actually acquired the title. The acquiring
authority, having entered the land may undertake activities in connection with the purpose for
which it is being acquired, but the title will not actually pass to the acquiring authority until it
has been conveyed. This will occur once compensation has been settled, either by agreement
or by the Lands Tribunal.
3.101 The date of entry is, in most cases, the date for valuing the land – see Booklets 2, 3 and 4 on
compensation.
General Vesting Declaration (GVD)
3.102 As an alternative to the notice to treat/notice of entry route, the acquiring authority may
acquire land by making a GVD. The main difference with this method is that not only does
the GVD give the acquiring authority the right to enter and take possession of the land but it
vests (conveys) the title to the property in the acquiring authority.
22
3.103 If your interest is to be acquired in this way, you will first receive (either in the statutory
notice of confirmation of the CPO (paragraph 3.71) or in a subsequent notice within 3 years)
a “form of Statement of Effect of a General Vesting Declaration”. As well as being served on
all parties with an interest in the land, this preliminary notice must also be published in a
local newspaper.
3.104 Not less than two months after this notice the acquiring authority may execute the GVD. You
will be served with a second notice, stating that the GVD has been executed and specifying a
date, which must be at least 28 days away, when the land will vest in the acquiring authority.
This date is referred to as the vesting date. On the vesting date, the land vests in the acquiring
authority, i.e. title passes to the acquiring authority. At this time, the acquiring authority has
the right to enter and take possession of the land.
3.105 The vesting date becomes the date for the assessment of compensation. The matter of
compensation is dealt with separately in Booklets 2, 3 and 4 on compensation.
Short Tenancies
3.106 A short tenancy is defined as an interest of no greater than for a year or from year to year.
The acquiring authority may seek to acquire such an interest under the notice to treat/notice
of entry route or under Landlord and Tenant powers, each of which are explained further
below. This kind of interest cannot be acquired by the GVD method.
Landlord and Tenant Powers
3.107 The acquiring authority may terminate the lease under the terms of the tenancy by acquiring
the freehold or any superior interest (such as a headlease) and serving notice to quit under the
terms of the lease.
3.108 In this case, there will have been no compulsory acquisition of the leasehold interest and
consequently there will usually be no entitlement to compensation under the compulsory
purchase legislation. (There may be an entitlement to compensation under the appropriate
Landlord and Tenant legislation).
Notice of Entry
3.109 The acquiring authority may serve a 14 day minimum notice of entry on a tenant having an
interest no greater than a tenant for a year, or from year to year, provided a notice to treat has
been served in respect of some other interest in the land, for example, if a notice to treat has
been served on the freehold interest.
3.110 You will be entitled to compensation “for the value of your unexpired term or interest in the
land, and for any just allowance which ought to be made to you by an incoming tenant, and
for any loss or injury you may sustain” (section 20, Compulsory Purchase Act 1965).
23
In Response to a Blight Notice
3.111 The blight notice procedure is a process by which you may bring forward the acquisition of
your property if it has become “blighted” as defined in planning law.
3.112 Where the value of a property has been reduced by certain categories of planning or other
development proposals, anyone with a qualifying interest, may be entitled to serve a “blight
notice” on the body responsible for this, requiring them to buy the property at its untainted
value. In short, the threatened or prospective compulsory purchase is brought forward thereby
removing the uncertainty which might otherwise make the property unmarketable save at a
significantly reduced price.
3.113 The guidance in this booklet is concerned with the procedures for compulsory purchase
rather than the broader subject of public development. Accordingly, the consideration of the
procedures relating to blight notices is restricted to the circumstances where blight arises as a
result of the inclusion of a property in a CPO.
3.114 It should be recognised that inclusion within a CPO is only one of many circumstances in
which a blight notice may be served. A full list of the circumstances in which a blight notice
may be served is set out in Schedule 13 to the Town and Country Planning Act 1990. Only
the ones relating to compulsory purchase are considered in this booklet, but there may be
opportunities to serve a blight notice earlier under one of the other categories of blight.
3.115 If you are concerned about blight arising from other circumstances you should ask your
professional advisor.
Qualifying Interests
3.116 In order to qualify to serve a blight notice, you must be one of the following:
•
•
A resident owner-occupier of a private dwelling.
•
An owner-occupier of an agricultural unit with at least six months occupation of the whole
or part;
•
Certain mortgagees and personal representatives.
An owner-occupier of any business property where the annual (rateable) value does not
exceed the prescribed limit at the date of service of blight notice – £29,200, based on 2005
rateable value;
3.117 An owner-occupier is defined as a freeholder or lessee with at least three years unexpired
term who has either occupied for at least six months or been in occupation for six months in
the last 12 and the property has been unoccupied since vacated.
3.118 An investment property owner is not entitled to serve a blight notice.
24
Content and Service of Blight Notice
3.119 A blight notice must be in writing and must state the interest in the land (for example
freehold or leasehold) and the statutory ground for serving a blight notice.
Acquiring Authority’s Response to a Blight Notice
3.120 The acquiring authority has two months to accept or reject the blight notice. If they take no
action, the notice takes effect automatically. If the blight notice is accepted or takes effect
following expiry of the two months, a notice to treat is deemed to have been served at the
date of acceptance or expiry. The procedure for taking matters forward is then as set out
above under the section on notice to treat (paragraph 3.85).
3.121 If the acquiring authority does not wish to purchase the property under the blight provisions
they may serve a counter notice within the two month period objecting on one or more of the
following grounds:
•
•
•
•
•
No part of the land is in a relevant category of blight;
The acquiring authority does not propose to acquire any of the land;
The acquiring authority only proposes to acquire part;
On the date of the notice, the claimant is ineligible;
The interest of the claimant does not qualify.
3.122 If you do not agree with the acquiring authority’s counter notice, you may refer
the matter to the Lands Tribunal within a period of two months and it will determine
the matter.
Compensation
3.123 There is generally a right to compensation following the taking of possession of the land.
This is explained in the other booklets in the series.
25
4. Next Steps
4.1
For details on your rights to compensation and how it is assessed you should read the booklet
which deals with the type of property which you own or occupy.
4.2
Details of the rights to compensation and how it is calculated are provided in the booklets on
compensation which are as follows:
Booklet 2 – Compensation to Business Owners and Occupiers
Booklet 3 – Compensation to Agricultural Owners and Occupiers
Booklet 4 – Compensation to Residential Owners and Occupiers
4.3
26
In addition Booklet 5 – “Mitigation Works” sets out the circumstances in which an acquiring
authority will undertake works to mitigate the adverse effects of its development on your
property. An acquiring authority can only be compelled to do mitigation works if your
property is residential. However, it may agree to undertake works in other circumstances.
Both sets of circumstances are covered in Booklet 5.
Appendix 1 – Terms Used In
Compulsory Purchase
Set out below is a list of terms and definitions commonly referred to when dealing with compulsory
purchase matters.
Compensation Code
A collective term for the principles, derived from Acts of Parliament and case law, relating to
compensation for compulsory acquisition.
Entry
See “Taking of Entry”.
General Vesting Declaration (GVD)
A legal procedure used in connection with compulsory purchase whereby an acquiring authority,
having obtained a CPO, is able to obtain possession and ownership of the land. This is a procedure
for the speedy acquisition of land and normal conveyancing practice does not have to be adopted.
Goodwill
The price which a purchaser of a business is prepared to pay, above the value of the premises and
stock, for the probability that customers will continue to resort to the old place of business, or
continue to deal with the firm of the same name: it is the benefit or advantage which a business has
in its connection with its customers.
Investment Property
Generally, any property purchased with the primary intention of retaining it and enjoying the total
return, i.e. income and/or capital growth, over the life of the interest acquired.
Land
Land includes buildings and structures. Existing interests and rights in land, such as freehold or
leasehold together with any existing rights can be compulsorily acquired either as a whole or in part.
Lands Tribunal
A tribunal for England and Wales set up under the Lands Tribunal Act 1949 and proceeding in
accordance with rules made by the Lord Chancellor. Its jurisdiction, amongst others, includes
adjudication on disputed compensation for the compulsory acquisition of land. The tribunal
comprises the President (who must be a barrister or have held judicial office) and members who are
all either legally qualified or experienced in valuation.
27
Marriage Value
Latent value which is or would be released by the merger of two or more interests in land. For
example, two adjoining parcels may be worth more as one property than the aggregate of their
separate values. Similarly, two interests in the same property (such as the freehold and the leasehold)
may have a greater value when merged than the sum of their individual values.
Mitigation of Loss
The duty of a claimant seeking compensation to take any reasonable steps open to him to reduce or
avoid loss. For example, a claimant could mitigate loss by seeking a number of quotes from
reputable contractors and instructing the cheapest.
New Rights
Compulsory purchase can be used by most acquiring authorities to create and acquire new rights
over land. An example would be the creation of a right of way or a right of support.
Noise Payment
A noise payment is available to moveable homes within 300 metres of a new or altered road who
have been seriously affected by increased noise levels as a result. It is payable at the discretion of the
Highway Authority.
Notice of Entry
A notice served on the owner and occupier(s) of a property by an authority possessing compulsory
purchase powers requiring possession to be given by a date prescribed in the notice. A minimum of
14 days notice must be given.
Notice to Treat
A notice served on owners, lessees and mortgagees by an authority with compulsory purchase
powers to acquire land. The notice gives particulars of the property to be acquired, demands details
of the recipients interest in the land and his claim for compensation and states that the authority are
willing to treat for the purchase of the land.
Public Development
A new or altered highway, aerodrome or other public works.
Ransom Value
The ability to obtain a high price for a small area which is key to the site being developed. For
example, where your land could unlock the development potential of an adjoining site by providing
the only possible access to it.
28
Relevant Date
In the context of a Public Inquiry it is the date of the letter which the Confirming Minister sends to
the acquiring authority and the objectors confirming that an Inquiry is to be held. This date is used
to establish timetables for the Inquiry procedure.
Remaining objector
A person who has a remaining objection within the meaning of section 13A of the Acquisition of
Land Act 1981.
Statement of Case
A statement prepared by the acquiring authority which sets out full particulars of the case to be put
forward at the inquiry and justifies the reasons for making the CPO.
Statement of Reasons
Sets out the authority’s reasons for seeking to acquire the land, and will accompany the CPO.
Taking of Entry
This is the act of an acquiring authority physically entering and taking possession of a property
following service of Notice to Treat and Notice of Entry.
29
Appendix 2 – Useful Contacts
Set out below is a list of contact details of bodies and organisations who may be able to offer their
advice if you are affected by compulsory purchase.
British Property Federation (BPF)
7th Floor
1 Warwick Row
London SW1E 5ER
Tel: 020 7828 0111
Web Site: www.bpf.org.uk
E-mail: info@bpf.org.uk
Community Legal Service (CLS)
Tel 0845 345 4345
Web Site: www.clsdirect.org.uk
Council for the Preservation of Rural England (CPRE)
128 Southwark Street
London SE1 0SW
Web Site: www.cpre.org.uk
E-mail: info@cpre.org.uk
Country Land and Business Association (CLA)
16 Belgrave Square
London SW1X 8PQ
Tel: 020 7235 0511
Web Site: www.cla.org.uk
E-mail: mail@cla.org.uk
Department for Communities and Local Government
Eland House
Bressenden Place
London SW1E 5DU
Tel: 020 7944 4400
Web Site: www.communities.gov.uk
E-mail: cpocrown@communities.gsi.gov.uk
Law Society
113 Chancery Lane
London WC2A 1PL
Law Society Information Services: 0870 606 6575
Web Site: www.lawsociety.org.uk
30
National Assembly for Wales
Cathays Park
Cardiff CF10 3NQ
Tel: 029 20 825111
Web Site: www.wales.gov.uk
National Association of Citizens Advice Bureaux (NACAB)
You should check your local telephone directory or call directory enquiries to find out details of your
local branch office. Details of local offices can be obtained from the web site below.
Web Site: www.nacab.org.uk
E-mail: adviceguide@nacab.org.uk
National Farmers Union (NFU)
Agriculture House
164 Shaftesbury Avenue
London WC2H 8HL
Tel: 020 7331 7200
Web Site: www.nfu.org.uk
E-mail: NFU@nfu.org.uk
Royal Institution of Chartered Surveyors (RICS)
RICS Contact Centre
Surveyor Court
Westwood Way
Coventry CV4 8JE
Compulsory Purchase Helpline: 0870 333 1600
Web Site: www.rics.org
E-mail: contactrics@rics.org
Royal Town Planning Institute (RTPI)
41 Botolph Lane
London EC3R 8DL
Tel: 020 7929 9494
Web Site: www.rtpi.org.uk
Town and Country Planning Association (TCPA)
17 Carlton House Terrace
London SW1Y 5AS
Tel: 020 7930 8903
Web Site: www.tpca.org.uk
E-mail: tpca@tcpa.org.uk
31
Valuation Office Agency (VOA)
Head Office
New Court
Carey Street
London WC2A 2JE
Tel: 020 7506 1700
Web Site: www.voa.gov.uk
E-mail: customerservices@voa.gsi.gov.uk
32
If you would like further copies of this leaflet contact
Communities and Local Government Publications
PO Box 236
Wetherby
West Yorkshire
LS23 7NB
Tel: 0870 1226 236
Fax: 0870 1226 237
Textphone: 0870 1207 405
E-mail: communities@capita.co.uk
or online via www.communities.gov.uk
Published by the Department for Communities and Local Government.
© Crown copyright 2004. Reprinted in the UK June 2008 on paper
comprising 75% post consumer waste and 25% ECF pulp. Product code 04 PD 02635/1